Changes to Article 9

to article 9 of the U.C.C., governing secured transactions, take effect on July
1, 2013. To date, Texas and 27 other states have adopted these amendments, and
bills to adopt them are pending in several others. A white paper on the changes from Daniel Callahan,
Shareholder of Kessler and Collins, a new IBAT Associate Member, has been
posted on the IBAT website.

most significant amendments deal with the proper identification of debtors on
financing statements. Other changes relate to:

  • electronic
  • what
    happens when a debtor changes its name, merges or relocates;
  • restrictions
    on assignments;
  • the
    filing of information statements; and
  • how
    the transition to the amended statute is to be implemented.

here to download the full white paper.

Fair Housing Act

The U.S. Department of Housing
and Urban Development (HUD) issued a final rule to formalize the national
standard for determining whether a housing practice violates the Fair Housing
Act as the result of discriminatory effect.

HUD is statutorily charged with the authority and responsibility for
interpreting and enforcing the Fair Housing Act and has long interpreted the
Act to prohibit acts that have a disparate impact on a group of persons because
of race, color, religion, sex, handicap, familial status, or national origin.

View the final rule.

Week in Review

you're a Labrador Retriever, you were probably disappointed to learn [last]
week that you and your kin are now "0-137" when it comes to winning
the Westminster Kennel Club Dog Show. If you're the U.S. Treasury, you were
probably disappointed to learn [last] week that not as many people wanted to
buy your bonds. In three separate auctions, the Treasury sold $72B of
"threes, tens, and thirties" to a universe of investors who were a
little less eager to soak up all that debt than they were last month. As a
gauge of investor demand, the bid-to-cover ratio compares the number of
competitive bids tendered to the amount of bonds sold. For all three auctions,
that ratio was lower than the previous month's results, with higher yields... Read more in the Baker Market Update

Mandatory Flood Insurance

The Federal Emergency Management Agency (FEMA) announced that it rescinded its publication Mandatory Purchase of Flood Insurance Guidelines
because The Biggert-Waters Flood Insurance Reform Act of 2012 (signed
by the President on July 6, 2012) causes it to be out of date. According
to FEMA's website, "lenders should consult their respective regulatory
agency for information regarding compliance with the mandatory purchase

State non-member banks can refer to The FDIC Compliance Manual at V. Lending - Flood Insurance,
which was updated December 2012. Unfortunately for state member banks
and national banks, neither the OCC nor the Federal Reserve have updated
the flood sections of their handbooks. Use caution when using manuals
that haven't been updated since July 2012. The Association of State
Floodplain Managers has a good summary of the Biggert-Waters Act.

FEMA will continue to provide assistance on NFIP-related questions
regarding underwriting, rating and claims processing. Inquiries should
be directed to Jeffrey Woodward, Senior Lender Compliance Officer,
Industry and Public Relations Branch, at 202-212-2183.

Guiltless Giveaway (2G)

many, 2G represents the speed and bandwidth of your phone service. However, for
IBAT, 2G is an important fundraising project over the next three months,
February-April, for the IBAT Foundation. We call it the IBAT Guiltless Giveaway (2G).

Why is it guiltless? Because it does not require you
to spend time and money for  an expensive dinner, cocktail attire and
attend a Gala. Instead, by donating $20 online, your name is entered  into
a drawing on April 1.

What's in it for you? The
Guiltless Giveaway supports the ongoing work of the IBAT Education Foundation
to build financially literate communities through programs like the IBAT Teach the Teacher ProgramTM. Besides the
goodwill you'll earn for helping build the IBAT Foundation corpus, there is a
very good possibility of winning one of 16 very nice prizes. The more tickets
you buy, the more possibilities you have to win. Time is of the essence.

The drawing will be April 1. Don't delay, only 2000 tickets will be sold.

CFPB Rule Changes

The CFPB recently completed the task of
writing rules to implement the Dodd-Frank Act (DFA) residential mortgage
changes. Under the rules, the implementation date is generally deferred until
January 2014. Without rules, the DFA requirements would have gone into effect
automatically January 21, 2013. On February 21, 2013, Karen Neeley will present
a free webinar for IBAT members discussing the rules as passed, including:

  • The
    qualified mortgage requirements;
  • MLO
    compensation issues;
  • Appraisal
  • Servicing
    requirements and more!

click here to register for this free webinar.

February Consumer Tips

February edition of IBAT's Consumer
is now available for download. Ten times a year, IBAT
staff and other contributors write helpful tip columns for distribution to
Texas's many weekly news publications.  We invite you to co-brand these
releases with the name and information of your bank, for distribution to your local
paper(s) or in your bank lobby.  

hope that you find this a helpful tool for continuing to heighten the profile
of your bank in your local community. 

Welcome Marni!

IBAT is pleased to welcome Marni
Robinson as the newest member of the IBAT Services team. In her new role, Marni
will be supporting the efforts of IBAT Services by working closely with the
IBAT Endorsed Service Providers to deliver quality products and services to the
IBAT membership.

brings more than 25 years of experience in a variety of administrative roles. During
this time, she also gained valuable marketing experience. She has worked in
diverse settings, including an energy company, advertising agency, church and
the office of the Attorney General of Texas.

recently, Robinson served as an executive assistant at Commercial Metals
Company. In this role, she assisted the regional director, managed accounts
payable and compiled and analyzed data for executive reports. Previously, she
served as executive assistant and associate marketing manager at American Achievement
Corporation. In these roles, her responsibilities included facilitating sales,
marketing and business operations in addition to creating and managing budgets
for several departments and product lines.

has a certification in marketing from The University of Texas at Austin. Please
welcome Marni Robinson!

Tour de Texas

IBAT Chairman Troy Robinson of
Quitman, along with past IBAT leaders and staff, will be traveling to some 8
Texas cities in February to conduct briefings on vital issues
affecting Texas community banks.  This will be your opportunity to learn
of our efforts on your behalf and provide us important feedback to voice your
concerns and help us determine the most important priorities for our
legislative and regulatory program of work over the next several months.
 And, more importantly, an opportunity to gather with fellow community
bankers in your area to network.  In addition, we are pleased to welcome
senior officials with the ICBA in Washington who will share our program agenda
and provide insight from inside the Beltway.

the Regional Meetings homepage, view the full schedule
of stops and register for one or more of the meetings!

Patient Protection

As 2014 approaches, the
implementation of the Patient Protection and Affordable Care Act
("ACA") looms closer than ever. The likelihood of repeal, even if
possible, is diminishing.

a recent white paper, Maria Robles-Meyers, Esq. outlines
how the 2014 ACA changes, fees and taxes will impact you and your bank.
 Robles-Meyers also explores the seemingly-opposite mindsets employed by
Congress in the implementation of the ACA versus their treatment of risk in the
Dodd-Frank Act.

addition to reading for personal insight into the looming effects of the ACA on
their businesses, IBAT members are encouraged to share the white paper with
their small business customers as well.  For more information, please
contact Advantage Health Plans Trust at (800) 521-1711.

Click here to download the full white paper.

Teaching Excellence Awards

IBAT Education Foundation is proud to honor three recipients of the 2012
Teaching Excellence in Financial Literacy Award.  Each recipient,
sponsored by a local community banker and chosen by a panel of independent
judges from across Texas, will receive a $1,000 cash award, to be presented
during ceremonies at their respective schools.


  • Linda Comer,
    Wellington High School - Nominated by Lynn Bartlett, AVP Wellington State
    Bank in Wellington;
  • Matthew Skylar Houston, Sweetwater High School - Nominated by Mike Fernandez,
    Texas National Bank in Sweetwater; and
  • Lynn Scotty,
    Utopia High School - Nominated by Nicole Horn, First State Bank of Uvalde
    in Uvalde.

the February edition of the IBAT Foundation
for more information on the winners and the strategies
they employ in the classroom.

Fun Fact Friday

Every February 14, across the United States and in other places around
the world, candy, flowers and gifts are exchanged between loved ones,
all in the name of St. Valentine. But who is this mysterious saint, and
where did these traditions come from? Read more.

FDIC Advisory Committee

to Cindy Blankenship, Vice Chairman of Bank of the West in Grapevine, on being
named to the FDIC's Advisory Committee on Community Banking. The
committee, established in 2009, provides advice and recommendations to the FDIC
on a broad range of community bank policy and regulatory matters, including
examination policies/procedures, credit/lending practices, deposit insurance
assessments, insurance coverage issues and regulatory compliance matters.

is a former Chairman of the Independent Bankers Association of Texas as well as
the Independent Community Bankers of America.

Helpful Driving Tips

IBAT just completed a VERY
successful first week of the 2013 Tour de Texas - Regional Meetings.  I was fortunate enough to attend 4 of the 8
meetings - in 4 days.  But that was a
small number in comparison to many of my colleagues!  Many of our IBAT vendors were "blazing trails"
across Texas, leaving an evening meeting to drive 3-4 hours to get to the next
town for the following day's meeting. 
Fortunately the schedule predominately started the day at noon - but a
couple of breakfast meetings do exist.

A recent study by the CDC found
that 1 in every 24 adults has fallen asleep while driving - more frequently males.  The National Highway Traffic Safety
Administration reports that drowsy driving results in over 100,000 auto
accidents each year, leading to 40,000 injuries and 1,550 fatalities and is a
factor in nearly 1 in 6 fatal crashes.  If
you find yourself "dozing off" - YOU ARE IN DANGER AND YOU ARE
impair driving performance as much or more so than alcohol!  Don't think you can "sing" your way
through this!  Turning up the radio,
rolling down the windows, stopping for a brief
for gas or coffee or pinching yourself does not provide a fool-proof
remedy to the problem!  In fact, for you
Starbucks Worshippers, there are conflicting recommendations regarding caffeine!  While caffeine is still listed as a
countermeasure to falling asleep, the NSF (National Sleep Foundation) states
that people who take stimulants while severely sleep deprived are likely to have
"micro-sleeps," which are essentially four to five second naps.   Four to five seconds is enough time to
travel more than 100 yards at 55mph and you all know we'll be driving more than

 A few items for prevention are provided by the
National Sleep Foundation:

  • Before a
    trip, do the following to reduce your risk:
    • Get enough sleep (7-9 hours for most adults)
    • Schedule proper breaks, about every 100 miles
      or 2 hours during long trips
    • Arrange for a travel companion - someone to
      talk with and share the driving
    • Avoid alcohol and sedating medications -
      check your labels or ask your doctor
  • Countermeasures
    to prevent a fall-asleep crash while driving
    • Watch for the warning signs of fatigue
    • Stop driving!
      Pull off at the next exit or rest area and find a SAFE place to sleep
      for the night or at a minimum a 15-20 minute nap.
    • Caffeine ... which is now questionable

We want all of our Members and Vendors to have a
very pleasant and safe experience during our Regional Meeting tours!  For considerable information on this topic,
we recommend this website.

Mortgage Rules

Friday, January 18, the Consumer Financial Protection Bureau issued more mortgage rules that prohibit a number of acts by
mortgage brokers or loan officers. The rule prohibits several acts,
including: compensation that varies with the loan terms, mandatory arbitration
of disputes related to mortgage loans and financing credit insurance fees or
premiums (although credit insurance may be paid monthly).  Loan
originators are prohibited from paying both the consumer and another person,
such as the creditor. Additionally, loan originators must meet character,
fitness and financial responsibility reviews, be screened for felony
convictions, and undertake training about the rules governing the types of
loans they originate. The rule contains the circumstances under which a
criminal conviction is disqualifying. Enumerated loan documents must contain
the NMLSR unique identifiers and names.

CFPB has authority to waive a Dodd-Frank Act ban on upfront points or fees on
transactions where the loan originator compensation is paid by a person other
than the consumer, and they had proposed to waive the ban so long as the
creditor offered an alternative loan that didn't include upfront points and
fees. However, the CFPB is not finalizing that proposal at this time, and
instead is proposing a complete exemption to the ban while it studies the

rules are effective June 1, 2013.